Holger Zschäpitz is senior editor of the financial desk and market maniac at @Welt and Author of 'Schulden ohne Sühne?' a book on states' addictiveness to debt.
#Fed balance sheet tops $8tn for the first time ever as Powell keeps printing press rumbling. Total assets rose by $111.9bn, most since March, due to increases in security purchases, traditional lending. Fed balance sheet now equal to 37% of the US's GDP.
Good Morning from #Germany , where the housing boom accelerates as Germans are buying real estate fearing rising rents & construction costs. Europace House Price Index has risen in tandem w/ECB balance sheet to ever new ATHs. Jumped 1.8% in May. German House Price Index now +7%YTD
OUCH! Wall St closed out its worst since Feb, as Fed’s surprise hawkishness upended reflation trade that has dominated markets this year. St. Louis Fed president Bullard told CNBC rates could be heading higher starting next year as inflation gains pace.
Good Morning from #Germany where the yield curve has flattened markedly due to falling long-term inflation expectations. German 2s/30s yield spread has dropped by 20bps from 110bps to 92bps since mid-May.
It's the liquidity, stupid! S&P has dropped in tandem w/global liquidity which has shrunk by $1tn this week.
Good Morning from #Germany where demand for cash remains high even as the possibilities grow for consumers to use other forms of payment for goods & services. People hoarded cash during pandemic out of uncertainty, and b/c they lacked opportunity to spend money, Bundesbank says.
CureVac’s flop shows Biontech, Moderna made mRNA look too easy. German firm’s technology, dosing differ from Biontech, Moderna. CureVac’s vaccine disappointment shows that not every messenger-RNA project will live up to sky-high expectations for novel tech
In case you missed it: #Fed has ramped up balance sheet expansion. Total assets have jumped by $92.2bn in the past week, most since March, to hit fresh ATH of $7,922.8bn as Powell keeps printing press rumbling. Fed balance sheet now equal to 36% of US's GDP vs #ECB 's 76.6%.
The Reddit army has destroyed $3.7tn in global mkt cap this week, equal to the GDP of #Germany , as the Hedge Fund short squeeze creates contagion. Hedge Fund had to sell their long positions to fund their losses from short activities.
#Turkey Lira in free fall. Now world's worst currency in 2020 w/ -30.2% YTD.
Buffett indicator sounds the alarm. Global stock mkt cap has now topped 120% of global GDP, and thus the same level as before the crash in 2008.
#Spain ’s toxic politics and health crisis have got Merkel worried: German officials view the situation in Spain w/growing concern. The resurgence has exposed fractures in systems of govt. Spain's economy has collapsed.
Just to put things into perspective: The S&P 500 may have hit a new ATH today, but if you put the index in relation to the Fed's balance sheet, it is trading at the same level as in 2008, so equities have traded sideways since 2008, basically counteracting balance sheet expansion
Good morning from #Germany , where #UK is becoming less important as an export market & hard Brexit is losing much of its fear. Exports to UK have fallen <€70bn in the past 12mths. Britain is now only the 5th most important export mkt for Germany may soon be overtaken by #Italy .
Good morning from #Germany , which has the highest electricity prices in world. One kilowatt-hour now costs 0.34 euros, twice as much as in #Sweden or 3 times as much as in the US. Energy transition & high subsidies for green electricity to blame. via @welt